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Interest only mortgage loans carry only interest during the first part of the repayment program. For the first couple of years, the mortgage payments monthly can stay low so that you can afford to pay the payments.
If at some point, the borrower needs to start repaying the capital portion of the loan. Thus, these loans are useful for those who can not afford high monthly payments right away but know that they will be able in the future or that they will have the money needed to pay off the whole loan’s principal when the loan is due.
Kirt Eure - Your Mortgage Coach
